SMARTPHONE

MARKET ANALYSISMai Bang – Vo Thi – Hong Ngoc

COMPETITOR

CONSUMER

COLLABORATION/ CHANNEL

FUTURE TRENDS

CATEGORY

AGENDA

TRENDS There are 4 trends about mobile market in the world

1. BIGGER SCREENSGlobally, sales of smartphones with larger screens (5”+) grew +180% in 2014, and have continued to drive growth in the first quarter of 2015. Shareof such devices grew from 32% – or one third – of the global smartphone market in the first quarter of 2014, to 47% – almost half – in thefirst quarter of 2015. So it is no surprise that supersize screens are expected to be the largest sales segment worldwide in 2015, surpassing the4 to 4.5” segment for the first time.

2. THE RISE OF 4GSmartphone growth in the world’s largest market,China, slowed slightly in 2014. This was due toa significant slowdown in 3G demand, which wasnot offset by 4G growth.

3. CHEAPER HANDSETS

In the first quarter of 2015, low-end smartphones– those priced below $250 – saw their shareincrease to 56%, up from 52% in Q4 2014, at theexpense of high-end models ($500+), while themarket share of mid-range devices ($250-$500)remained stable.

4. THE FAST GROWTH OF EMERGING MARKETS

The rapid growth of the smartphone markethas been shown to slow at country level whensaturation point is approaching. For this reason,Spain and France are expected to see a slowdownin smartphone unit growth in 2015 compared to 2014.

KEY MARKET TRENDS KEY INDUSTRY CHALLENGES KEY SOLUTION REQUIREMENTS

1. Growth in Smartphones Increasing Smartphone Incidents Mobile Handset Protection

2. Enhanced Device Capabilities Managing Device Complexity Mobile Device Support

3. Growth in Mobile Data Loss of Mobile Data Mobile Data Protection

4. Explosion in Mobile Apps Supporting Mobile Applications Mobile Application Support

Source: Frost & Sullivan

THERE ARE 4 KEY TRENDS AND CHALLENGES IN VIETNAM MOBILE MARKET

CATEGORY

As we can see, smartphones also represented 41% of all mobile phones shipped to Vietnam last year and are expected to eclipse feature phones in 2015.

Rapidly declining smartphone prices has led to the rise of smartphone penetration rates in Vietnam throughout 2014.

The low-cost segment has been the main driver, with six out of ten smartphones as budget models priced below US$150 are shipped to Vietnam ( according to report)

Smartphones in Viet Nam are

growing rapidly

CATEGORY

IDC’s survey also showed that Samsung was still the largest seller in Vietnam, even though its market share significantly shrank from 54 percent in 2012 to 26 percent 2014.Microsoft Mobile, formerly known as Nokia, continued to grow with its share increasing to 24 percent from 16 percent in 2013.

Most of Microsoft Mobile’s products targeted the middle segment, while Apple and Samsung dominated the luxury (high-end) segment.

Smartphones market share in Viet Nam

are dominant by Samsung and Microsoft

COMPETITOR

Look into Vietnam Smartphone market, there are three type of consumers: fashion-forward youngsters, mass consumers and power users.

Based on that, we can also divide market by some key main product atributes like: style/design, features, durability and performance

Vietnam Smartphones market

Segmentation

COMPETITOR

Vietnamese consumers have increasingly preferred smartphones to feature phones, with a wide range of brands to choose from, including Samsung, Oppo, Mobiistar, Q-Mobile, Asus, Sony, Apple and Microsoft. Oppo reported the strongest growth thanks to numerous promotional campaigns.

More smartphone users in Vietnam have switched to devices with screens bigger than four inches than the same period last year.

Handsets whose price averaged VND 4.5 million were the bestsellers in the Jan-Mar period. Microsoft, Samsung, and Oppo have many products in this price segment.

CONSUMER

Nam72%

Nữ28%

WHO ARE MOBILE INTERNET USERS IN VIETNAM

People are

WHO?

CONSUMER

Vietnamese people mostly use smartphone for VIDEO,

MUSIC, SOCIAL MEDIA, EMAIL AND APPS

Source: Nielsen –Technology and Consumer in VN

People do

WHAT?

CONSUMER HOW people use

smartphones?

in US in VN

CONSUMER

Smartphones are used everywhere. However, they are used mostly at home or

work

Should focus on activities at home or at work

Source: Google Mobile Planet Vietnam Research 2013

People use

WHERE?

CONSUMERPeople use

WHEN?

CONSUMER People think

WHAT?

CONSUMER

95% of smartphone users notice mobile ads

Potential to make mobile campaigns

PURCHASE DECISION BASED ON…

CONSUMER

CHANNEL

80%

20%

Channel Contribution

MT

GT

Smartphone are mostly sell in MT channel

Key accounts (TGDD, Viễn Thông A, FPT, Viettel), contribute from 70 to 80% amount of sell

Source: QM&E research

Petro10

Master Dealers

Small Shops

GT Channel Distribution network20% contribution

MT Channel Distribution network80% contribution

1.5% margin Price off

CHANNEL

Main company doesn’t directy distribute but through PSD(petro), this party will stock their goods in warehouses and receive 1.5% margin from the stock keeping, this is also a way to reduce pressure about inventory and aging (goods in

more than 4 weeks is beginning to be Considered as aging)

End Consumer

Bundle Accessories

Price off

Phone insurance

CHANNEL

Some kind of promotion to End consumer